Global product placement spending grew an
estimated 11.7% in 2012 to $8.25 billion, driven by strong expansion in the
BRIC countries, accelerated deployment of TV integrations in Europe and a
resurgent US market, according to the PQ
Media Global Product Placement Spending Forecast 2012-16. While
headlines tout the rapid growth of digital advertising and marketing online and
via mobile devices, why are global brand marketers shifting back to a tactic
that has been around for more than 100 years?

The simple answer is eyeballs versus
technology. That is, TV remains the most consumed medium worldwide, as witnessed
recently by the large global audience for the Super Bowl in the US. The Super
Bowl, however, is an anomaly in that viewers often specifically watch
commercials, based on numerous popularity metrics for the game. But, more
often, other TV viewing is being done less in the present or on conventional TV
sets, as time-shifting popular programs has become the norm, in part to avoid
commercials. As a result, TV product placement has remained – even strengthened
– as a valid brand strategy to engage as many eyeballs as possible without the disintermediation
of ad-skipping DVRs.

But the simple answer is not the only
answer. Rather, a major reason product placement spending grew at a
double-digit rate in 2012 is the rising level of sophistication being employed to
integrate brands into TV programs and movies worldwide. This is especially true
in the emerging BRIC countries. Product placements in these four countries for
many years were done haphazardly, often at the request of a brand to its
agency. Increasingly, however, product placement agencies are being formed to
enable professionals to work more closely with media producers in order to
integrate brands effectively into scripts, similar to what has been done in the
US for nearly two decades.

PQ Media's examination of the top 15 global
product placement markets shows the three fastest-growing are Russia, India and
China. While Brazil ranks sixth – its annual growth also trails South Korea and
Germany – it's actually the second-largest product placement market in the
world behind the US. In fact, the Brazilian market is three times the size of Russia,
India and China combined. In addition, global brands are capitalizing on
Brazil's vibrant telenovela genre, which is a key driver of product placement
growth throughout Latin America, as well as in the US Hispanic media market.

Meanwhile, the fastest-growing media
platforms for product placement are online and mobile devices, and the BRIC
markets are leaders in tech-savvy audiences seeking original programming on
digital devices, which lend themselves to creative product placements. Accordingly,
brand marketers have upped their investments in product placement in an effort
to connect with harder-to-reach, multitasking consumers who are using digital
and wireless technology to consume content more often and to view advertising
less frequently. Therefore, we expect the BRIC countries to remain a major
driver behind product placement growth over the next several years, accentuated
by expanding markets in the European Union, which only recently passed
regulations allowing product placements on TV, the largest media platform.

The PQ
Media Global Product Placement Spending Forecast 2012-16 is the
industry's benchmark for spending, growth, analysis and insights, providing
in-depth coverage of all three major global regions and 15 leading markets for
the 2006-16 period. The Forecast includes 64 pages of analysis and 39 data
tables. PQ Media is a leading provider of
research, education and consulting services to the media, entertainment and technology
industries. For more information about the data and insights in this article, visit
the hyperlinks above or contact Gabriella Kallay at gkallay@pqmedia.com or 203-921-0368.